CML claims 900,000 in negative equity

The trade body noted that the perception of a causal link between negative equity and mortgage repayment problems was a myth, stating that negative equity only becomes a problem if households need to move, or are already experiencing repayment difficulties. Bob Pannell, head of research at CML, commented: "Negative equity will contribute to subdued property turnover, but otherwise should have few adverse effects for the majority of households affected. Where people needs to move house for job or other priority reasons, lenders can often be flexible to existing borrowers with low or negative...